San Diego Negative Home Equity
San Diego negative home equity
Last week, online real estate valuation researcher Zillow.com released its latest quarterly number on negative equity in major markets. The percentage of homeowners with negative equity appears to be on the decline.
For San Diego County, Zillow found the fourth quarter negative equity rate was 24.7 percent, which was down from the second quarter, when it was 31.6 percent, but higher than the third quarter, when it was 21.6 percent. In metropolitan Las Vegas, for example, 81.3 percent of all homeowners – 256,000 households – were underwater on their mortgages in the fourth quarter. In Phoenix, 61.5 percent of borrowers were in negative territory.
San Francisco real estate lawyers
San Diego Negative Home Equity
San Diego real estate mortgage bust. Much has been made of stated income, nina, ninja, etc. loans. The fact remains that the debt to income levels that were accepted during the boom time for people who could document their income exceeded 55%. Sub prime borrowers who could document their income could have DTI levels from 50-55%.
What is not talked about is that Fannie and Freddie loans could get approved with DTI levels as high as 63%. Typically a borrower would need some other strong factor such as high FICO or 6-8 months in reserve. Nevertheless, people are not walking from their homes just because they are upside down. Like most things in life there is rarely one answer, rather a multitude of factors.
Get ready for the next wave of foreclosures, just months away. This new wave of foreclosures will be prime mortgages on upper end homes. San Diego real estate agent